14 DAY TRIAL // Apple’s new-generation iPhones are now more affordable in China, as the Cupertino-based tech giant has decided to lower prices by as much as 6 percent.
The discounts are the result of a tax change introduced in China and which lowers the value-added tax (VAT) for manufacturers from 16 percent to 13 percent.
As a result, Apple decided to reduce the prices of most of the products that it sells in China, including iPhones, iPads, Macs, and AirPods.
As per CNBC, the iPhone XR now costs 4.6 percent less than before, so it can be purchased in China for 6,199 yuan ($922), down from 6,499 yuan ($967). The iPhone XS and XS Max have received a 500 yuan discount, which at the current currency conversion rates, it means they are some $75 cheaper in China.
Dropping iPhone prices
Lowered iPhone prices are good news not only for customers in China, but also for Apple itself.
Not only that China has been one very challenging market for the Cupertino-based firm, but the 2018 iPhone lineup in particular has struggled to reach the sales figures the company anticipated before launch.
The price tag has long been considered the main factor of declining sales, and Apple turned to several measures to counter the drop. In China, for example, the company reached out to retailers to offer discounts for new iPhones, while in other markets like Japan, Apple provided carriers with iPhone subsidies.
The production at several suppliers has been adjusted several times because of dropping demand, and Apple itself revised its expectations in January, confirming that the iPhone indeed sells below the anticipated level.
iPhone XR, which is the most affordable iPhone model launched in 2018, can be purchased in the United States from $749, whereas the iPhone XS starts at $999. The top-of-the-range iPhone XS Max costs no less than $1,449 in the same market.